Trade Ideas for 08/04/09

We got that extra push higher today and made it into the quadruple digits in the S&P. The day's action was a struggle upwards in a wedge formation. Interestingly, every hourly candle closed higher than the last, making it seven green candles in a row. To my eyes, the upward wedge suggests exhaustion. I said Friday that there might be 20-30 points upside from that day's close; now that 15 of those points have been spent, upside looks like 5 points.

I redid the labeling on Wave 3; we're still in 5 of 5 by my count, but it looks cleaner. We bought KBH today.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Addl Exit Guideline	Chart
TQNT	7.11	7.06	-0.7%	6.77	N/A	Chart
COF	30.81	31.39	+1.9%	30.49	N/A	Chart
CWTR	6.87	7.21	+4.9%	6.99	N/A	Chart
KBH	17.06	17.23	+1.0%	16.64	N/A	Chart

I don't think the risk/reward is there for the long side. We already have longs in case the market shoots higher and disproves my Elliott Wave count. Meanwhile, let's see if any of the short ideas get elected tomorrow.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
QID (Ultrashort QQQQ)	26.93	25.99	N/A	Chart
TWM (Ultrashort Russell 2000)	34.96	33.49	N/A	Chart

Please refer to "How To Trade The Ideas" (right-hand side) to read this table.